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Kent Hovind Update – Waiting For Theo’s Other Shoe To Drop
This post is written with the assumption that the reader has some familiarity with the trials and tribulations of Independent Baptist Minister, young earth creationist,...
Brookings Institution Takes On Biggest Charitable Tax Break Used By President Trump
A small point on that might be that you really can’t call a deduction cost-effective if the Joint Committee isn’t even scoring it. The fundamental problem with the deduction is that it is something of a free lunch and that there will be a natural tendency for a race to the bottom when it comes to appraisal quality.
On the other hand, I love what the land trusts are doing and as long as the IRS is underfunded, the scoundrels will be able to find a weak point in the system somewhere.
Beware Of Disability Income Tax Traps
The practical takeaway from this discussion is that if you have the prospect of receiving disability income, be sure to consider the tax effects of the different choices you make. A few extra dollars from SSDI might end up putting you in a net negative situation. The tax rules here kind of scream for simplification, but I have not seen any reform proposals being floated sticking you with Reilly’s First Law of Tax Planning. It is what it is. Deal with it.
Address On Federal Return Creates State Income Tax Problem
You are always a resident of the state where you are domiciled even if you spend no time at all there in a given year. I constructed a hypothetical fellow called Harry Hedgefund. He is a dealmeister with offices in Manhattan and Boston. He has apartments in Greenwich Village and the South End, where his mistresses live. And he has a monstrous house in Alpine, NJ where his family lives. That means he is domiciled in New Jersey, but there are many days where he is in New York in the morning and Massachusetts in the evening making him a statutory resident of both states.
Tax Rate Of 137% On Net Disability Settlement
We don’t know how Mr. Nordloh actually made out on his 2011 refund claim, so we can’t determine how much he was net out of pocket. It is worth noting that the CPA computation was $5,169. That was on a net from the settlement of $3,771. That works out to a federal income tax rate of 137%. Congress should really do something about this, but I am not holding my breath. I’ve seen worse.
The other thing that is absurd about this case is the way the IRS vigorously went after the accuracy penalty. The Enrolled Agent, the IRS and the CPA came up with three different answers and then the IRS came up with a fourth answer. And the IRS wants to charge an accuracy penalty. Go figure.
IRS Offers Estate Tax Relief To Widows And Widowers
This is a matter that moderate millionaires need to consider if they are surviving spouses of people who died after 2010, where no estate tax return was filed. You have to weigh the administrative hassle of accomplishing the filing against the chance that you might die with a net worth over the exclusion amount. Remember it is not your current net worth, but what your date of death net worth might be. Who knows maybe one of your ships might come in?
If you do think this is something you should do, jump on it now. There may well be a premium on estate tax preparation in December. If your spouse died in 2011, gathering the information to do the return might be a bit of a project.
Tax pros should think about their widow and widower clients particularly those who have substantially boosted their net worth since their spouse died.
There is more to the procedure than I have laid out here, but I think I have given you the primary action item.
How To Know Your Electronically Filed Income Tax Return Was Really Filed
Originally published on Forbes.com. I think it is a good thing that people tend to be loyal to their tax preparers. Reilly's Second Law Of Tax Practice, as modified...
Judge Cites Rapper In Wrap Ruling
I’m wondering whether that was the first time a state supreme court has cited a rap album as a source. It is worth noting that Justice Monica Marquez who wrote the opinion was, more or less, on her way to Yale Law School when Redman (Reginald Noble), who is about her age recorded his blunt rolling instructions in 1992.
Tax Woes Of The Marijuana Business Where Conservatives Lose Their Enthusiasm For States Rights
One way to mitigate the effect of 280E is to allocate expenses to a separate legal business. This technique was upheld by the Tax Court in Californians Helping to Alleviate Medical Problems in 2007. Free services such as yoga, instructions in use of vaporizers and on-site munchies do not help though.
Nick indicated that the IRS has been very aggressive in auditing cannabis establishments. Audit coverage is high and there is little give. They are looking deeply into payroll records for 280E disallowance and holding firm on not updating what goes into cost of goods sold. Based on the 471 interpretations, cannabis establishments are not being allowed to have the advantage of bonus depreciation.
Hole Opens In Tax Blogosphere – Say It Ain’t So Joe
There used to be three sources for an overview of the tax blogosphere. Joe’s daily summary, a weekly summary by Paul Caron and Bob Flach’s What’s the Buzz. The Tax Prof turned his weekly summary over to Joe making it a compilation of his daily summaries. What’s The Buzz is nice, but it never purported to be thorough and Bob Flach, who scorns the expensive software that the rest of the industry uses and hates the GD extensions almost as much as the mucking fess that the idiots in Congress make out of the tax law, restricts his blogging during tax season to instruction to his clients not to bother him. Joe referred to the Flach version of tax season as a two-month death march.